DCM Shriram Consolidated Ltd has approved a
proposal to expand its sugar capacity from 14,000 tccpd to 28,000 tccpd in Uttar
Pradesh and chlor-alkali capacity from 250 tpd to 310 tpd at Kota in Rajasthan.
The company has also decided to augment the total
power (cogeneration) capacity at its sugar factories from 24 MW to 72 MW. The
new sugar capacities will be completed by October 2006, the last phase of power
augmentation is likely to completed by October 2007 and the chlor-alkali
capacity by February 2006.
The company is expanding its total capacity from
11,000 tccpd to 14,000 tccpd at its plants in Ajbapur and Rupapur by
September-October 2005.
However, the company's board has approved a
proposal to further enhance these capacities through brownfield and greenfield
expansions to a total of 28,000 tccpd from 14,000 tccpd with an investment of
about Rs.386 crore by October 2006. This will be accompanied with a substantial
increase in power capacity from 24 MW to 72 MW including 30 MW for sale of power
to the state grid.
These initiatives also include the setting up two
new sugar plants of 5,500 tccpd capacity each in Hardoi district and expansion
of capacity at Ajbapur plant from 7,500 tccpd to 10,500 tccpd. The new plants,
like the existing ones, will be self-sufficient with power.
In the case of chlor-alkali capacity, DSCL
proposes to enhance its capacity at the Kota manufacturing complex from 250 tpd
to 310 tpd. This will be achieved at a cost of Rs.24 crore, and is likely to be
implemented by February 2006.
In March 2005, the company had completed a
conversion-cum-expansion project at its Kota complex to convert its entire
mercury cell based chlor-alkali production capacity of 139 tpd to 250 tpd.
These new initiatives will be funded through a
combination of internal accruals and external borrowings.